Building Energy Performance Standards (BEPS)

• The County has developed BEPS that aligns with goals for climate and racial/social equity, balances flexibility with immediate action, provides certainty and transparency for building owners and tenants, and spurs jobs and economic growth.
• After benchmarking for at least 3 years, each covered building receives a baseline averaging the 2 highest site energy use intensity (site EUI) over the baseline period.
• Each covered building is assigned a final performance standard based on the building type. Mixed-use buildings receive "area weighted" final performance standards that factor in the floor area associated with each property type in the building. 
  • The final performance standard for any covered building will not require a reduction of greater than 30% from the building’s baseline.
• After 5 years, buildings are evaluated as to whether they are meeting the interim target: halfway between the baseline and final standard.

If a building cannot reasonably meet the Interim or Final Performance Standards due to economic infeasibility or other circumstances beyond the owner's control, the County can accept a Building Performance Improvement Plan (BPIP). Plans are reviewed by the  Building Performance Improvement Board.

1. Assess

   The BPIP requires energy audit and assessment of equipment replacement, electrification feasilbility, and onsite renewable energy, done by a qualified auditor.

2. Plan

   Create a retrofit plan identifying the cost-effective energy improvement measures and the year or qualifying event during which they will be done.

   • Cost effectiveness is defined within the simple payback of each measure and is the lesser of the the lifespan of the measure, or, for specially designated buildings, 10 years.
   • Specially designated buildings include:
     • Local, small-business-owned buildings
     • Non-profit-owned buildings
     • Multifamily buildings subject to rent stabilization
     • Common ownership communities
     • Affordable housing buildings

3. Implement

   Demonstrate ongoing compliance by reporting annually that the measures committed to in the retrofit plan were done per the schedule.

   • Building owners meeting the actions and timelines in an approved Building Performance Improvement Plan will be considered to be in compliance with BEPS, regardless of the building's resulting performance.

4. Refile if needed

   BPIP can be used for compliance with iterim and/or final standards. Measures with a simple payback of 5 years or less must be implemented before a subsequent BPIP is approved.

The metric buildings are measured against is Normalized Site Energy Use Intensity (EUI), a measure of how efficiently a building is using energy relative to its size. The benefits of using this metric include:

• Measuring energy use directly controlled by the building owner
• Easy to understand
• Can be normalized for weather and operations
• Readily available in ENERGY STAR Portfolio Manager for reporting, which is consistent with Benchmarking Law requirements
• Favors electrification—a key strategy for reducing community-wide GHG emissions

Covered buildings also receive a renewable energy allowance for all onsite renewable energy as “credit” towards the performance target. 

BEPS covers most commercial and multifamily buildings 25,000 gross square feet and larger. Covered buildings are grouped by size and type:

• County buildings and Groups 1 & 2: County and privately-owned nonresidential buildings 50,000 gross square feet and larger;
• Group 3: County and privately-owned nonresidential buildings 25,000 to 50,000 gross square feet, and buildings previously exempted by the Benchmarking Law;
• Group 4: Multifamily residential buildings 250,000 gross square feet and greater;
• Group 5: Multifamily residential buildings 25,000 to 250,000 gross square feet.

Covered buildings are grouped by size and type. This grouping dictates when buildings begin benchmarking, their baseline periods, and their interim and final performance standard deadlines:

Building Group	First Benchmarking Deadline	Baseline Years	Interim Performance Standard	Final Performance Standard
County: County-owned buidings 50k+ gsf	June 1, 2015	2018 - 2022	12/31/2028	12/31/2033
Group 1: Non-residential 250k+ gsf	June 1, 2016	2018 - 2022	12/31/2028	12/31/2033
Group 2: Non-residential 50k - 250k gsf	June 1, 2017	2018 - 2022	12/31/2028	12/31/2033
Group 3: Non-residential 25k - 50k gsf	June 1, 2023	2022 - 2024	12/21/2030	12/31/2035
Group 4: Multifamily 250k+ gsf	June 1, 2023	2022 - 2024	12/31/2030	12/31/2035
Group 5: Multifamily 25k - 250k gsf	June 1, 2024	2023 - 2025	12/31/2031	12/31/2036

2021

• Apr 1: The County Executive transmitted the Building Energy Performance Standard legislation to the Council. Download the  full transmittal memorandum and legislative package (PDF). See the Office of Legislative Oversight's  Racial Equity and Social Justice Impact Statement (PDF) on  Bill 16-21 (PDF). See the Office of Legislative Oversight’s  Economic Impact Statement (PDF) on Bill 16-21.
• May 4: The BEPS legislation ( Bill 16-21) was introduced at Council.
• Jul 20: The Council held a public hearing on the bill. View the written testimony submitted on Bill 16-21.
• Oct 28: The first Council Transportation & Environment Committee work session on BEPS occurred ( staff packet (PDF) / slides (PDF) / recording).
• Dec 9: The second work TE Committee work session ( staff packet / recording).

2022

• Jan: Montgomery County joined forces with state and local governments across the country in the White House Council on Environmental Quality’s National Building Performance Standard (BPS) Coalition. Through the coalition, Montgomery County commits to increase community and local stakeholder engagement to co-design BPS and complementary policies and programs with the goal of adopting BPS programs by Earth Day 2024. See the County’s announcement.
• Mar 14: T&E Committee received a briefing on the BEPS Technical Report ( staff packet (PDF) / slides (PDF)) and held a third work session on BEPS ( staff packet (PDF) / recording of briefing and work session).
• Mar 28: T&E Committee reviewed amendments to bill 16-21 ( staff packet (PDF)) and held a final work session on BEPS ( recording of work session). The T&E Committee unanimously voted Bill 16-21 out of committee and Bill 16-21 will go before the full Council for review and final votes.
• Apr 19: County Council voted unanimously to pass bill 16-21, Environmental Sustainability - Building Energy Use Benchmarking and Performance Standards - Amendments ( staff packet (PDF)). Regulations will be issued by December 31, 2023.
• May 2: County Executive Elrich signed Bill 16-21 into law ( recording of the bill signing event). The Bill took effect on July 31, 2022, 90 days after signing.

2023

• Nov 1: Draft executive regulations related to BEPS implementation appeared in the November, 2023 County Register, for a public, 30-day comment period that ended November 30, 2023.

2024

• Jan: Transmittal packet of proposed BEPS regulations (PDF) (including  Building Performance Improvement Board recommendations, public comments received, and proposed regulations) was issued to County Council. The regulations will be considered by County Council in 2024.View a clean version of the proposed regulations (PDF).
  • The full transmittal packet of proposed BEPS regulations (PDF) contains memos outlining regulation content (page 1), the Building Performance Improvement Board's summary recommendation report on BEPS regulations (page 7), and All comments received during the 30-day public comment period (page 37).
• Feb: Council approved a  resolution to extend the deadline for consideration of Executive Regulation 17-23, Building Energy Performance Standards to September 30, 2024. 
• The Transportation & Environment Commitee held a series of work sessions on proposed BEPS regulations:
  • Jan 24 - discussion with hospital stakeholders ( staff packet / slides (PDF) / recording)
  • Feb 26 - discussion with affordable housing stakeholders ( staff packet / recording)
  • Mar 18 - discussion with life sciences and biotech stakeholders ( staff packet / recording)
  • Jul 15 - discussion with multifamily housing stakeholders ( recording)
  • Sept 16 - Financial Issues/Green Bank ( recording)
  • Sept 23 - discussion with faith community ( recording)
  • Full Building Energy Performance Standards T&E Committee Panel Discussion Testimony
• Sept: Council approved another resolution to extend the deadline for consideration of Executive Regulation 17-23, Building Energy Performance Standards to February 28, 2025.

2025

• Jan 22: A transmittal packet of  modified BEPS regulations, 17-23AM, was issued to County Council.
  • View a clean version of the modified regulations (PDF)
  • The full transmittal packet of the modified BEPS regulations (PDF) contains memos outlining regulation changes (page 1), a clean version of the regulations (page 6), an underlined version (page 21), and a version that shows tracked changes (page 36).
• Jan 30: The Transportation and Environment Committed voted unanimously to approve the modified BEPS regulations. ( staff packet / recording)
• Feb 11: The County Council held a work session on Executive Regulation 17-23AM. ( staff packet / recording)
• Feb 25: County Council voted unanimously to appove Executive Regulation #17-23AM, Building Energy Performance Standards ( staff packet / recording / Council press release)